It costs much less for a firm to retain current customers than to attract new ones.

Question

Quizplus · Accepted Answer

Research has shown that retaining current customers is more cost-effective than attracting new ones. Acquiring new customers typically involves marketing and advertising expenses, as well as additional time and resources spent on sales efforts. On the other hand, maintaining positive relationships with existing customers can lead to repeat purchases and positive word-of-mouth marketing, which can generate increased revenue at a lower cost.

It Costs Much Less for a Firm to Retain Current